Industrial production in the United States rose by 0.7% month-over-month in September, surpassing the anticipated 0.4% increase. This follows previous month increases of 0.1% in August and 0.2% in July, as reported by the Federal Reserve. The September increase represents the sixth consecutive month of growth and the seventh increase in the past eight months. Year-on-year growth for September accelerated to 2.2%, the highest since January, up from 1.4% in August.
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The industrial production index reached 104.0 in September, 4.7% above a low of 99.3 recorded in November 2024. On a quarterly basis, production increased by 0.7% for the third quarter of 2026, reflecting a yearly increase of 1.7%. This marked the sixth rise in the past seven quarters, although the annualized growth rate moderated to 2.8% in Q3 from 4.8% in Q2.
By sector, manufacturing output grew by 0.3% year-over-year in September, marking seven increases in the past eight months. Durable goods production improved by 0.1% year-over-year in September, despite a 0.5% decline in August. Key categories such as primary metals and machinery led the growth, registering increases of 1.6% and 1.4% respectively. However, categories like motor vehicles and furniture experienced declines.
Nondurable goods production saw a 0.4% rise in September following a stagnant August, led by a recovery in printing and related activities. Utilities output surged by 3.5% year-over-year, supported by a significant rise in electric utilities output, while mining activity saw a modest increase of 0.2%.
Consumer goods production increased by 0.7% in September, reflecting a mixed performance between durable and nondurable goods. The capacity utilization rate rose to 76.9%, the highest since December 2023, though it remains below the long-run average. Manufacturing capacity utilization increased slightly to 75.9% in September.
The data on industrial production and capacity utilization are sourced from Haver Analytics' USECON database.